Alfieri v. Bertorelli
295 Mich. App. 189
Mich. Ct. App.2012Background
- Plaintiffs purchased a condominium in a repurposed, contaminated former factory site where a vapor barrier was installed but decontamination was not completed.
- Plaintiffs relied on a brochure and newspaper article indicating cleanup and made no independent environmental analysis.
- Defendants, as sellers’ agents, allegedly misrepresented or failed to disclose environmental conditions and related concerns.
- Trial court denied motions for summary disposition, directed verdict, and JNOV; jury found liability for silent fraud and negligent misrepresentation, with 35% comparative fault to plaintiffs on negligent misrepresentation.
- Plaintiffs cross-appealed regarding jury instructions; court affirmed judgments and rulings, including the comparative-negligence instruction.
- Key issues include whether a duty to disclose existed for seller’s agents, whether reliance was reasonable, and whether jury instructions and comparative negligence rulings were appropriate.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Duty to disclose by seller's agents | Alfieri argues agents owed a duty to disclose newly acquired information rendering prior statements misleading. | Greene/defendants contend no duty exists for seller's agents to disclose. | Duty exists; genuine fact dispute on disclosure duty. |
| Reasonableness of plaintiffs' reliance | Alfieri reasonably relied on the sales brochure, Greene's statements, and public sources indicating cleanup. | Reliance was unreasonable and plaintiffs should have conducted independent verification. | Reasonable reliance shown; denial of motions proper. |
| Jury instruction on comparative negligence | Instructing on comparative negligence was improper for negligent-misrepresentation not involving personal injury or property damage. | Instruction was appropriate under public-policy and apportionment principles. | Instruction appropriate; no error. |
| Imputed knowledge doctrine and separate analyses | Plaintiffs should have separate consideration of each plaintiff’s fault due to joint venture concerns. | Imputed knowledge applies; joint venture doctrine supports a single knowledge standard. | Imputed knowledge applicable; no error in not instructing separate fault analysis. |
Key Cases Cited
- M&D, Inc v McConkey, 231 Mich App 22 (1998) (defines silent fraud and fraudulent misrepresentation elements)
- Mable Cleary Trust v The Edward-Marlah Muzyl Trust, 262 Mich App 485 (2004) (duty may arise from buyer inquiries or recognized information)
- United States Fidelity & Guaranty Co v Black, 412 Mich 99 (1981) (duty to disclose may arise when buyer has particular concerns)
- Fejedelem v Kasco, 269 Mich App 499 (2006) (warning on reliance where plaintiff given information about financials)
- Unibar Maintenance Servs, Inc v Saigh, 283 Mich App 609 (2009) (negligent misrepresentation requires duty of care and justifiable reliance)
- McMullen v Joldersma, 174 Mich App 207 (1988) (noting seller's agents' duty distinctions and disclosure expectations)
- Nat’l Sand, Inc v Nagel Constr, Inc, 182 Mich App 327 (1990) (limits on applying damages timing and limitations periods)
- Local 1064, RWDSU AFL-CIO v Ernst & Young, 449 Mich 322 (1995) (animates modern interpretation of injuries to persons for comparative fault)
- Duke v American Olean Tile Co, 155 Mich App 555 (1986) (applies comparative negligence in negligence actions)
- Sweet v Shreve, 262 Mich 432 (1933) (limits considerations on which statute of limitations applies for fraud actions)
- National Sand, Inc v Nagel Construction, Inc, 182 Mich App 327 (1990) (discusses limitations and injuries qualifying under comparative fault)
